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50 Investors to Build CNG Stations

50 Investors to Build CNG Stations 50 Investors to Build CNG Stations

Fifty investors have expressed readiness for the construction of compressed natural gas stations across the country, the Oil Ministry's director for energy planning said.

"One of the constructive measures taken by the Oil Ministry to promote CNG consumption was to double the station owners' commission," Mohsen Mazloumi Farsi added.

The stipulated commission for CNG station owners was previously 400 rials ($0.01) per cubic meter of CNG, but the government has doubled the amount to 800 rials, IRNA reported.

A special commission is set aside for investors building CNG stations in major and minor cities , which stands at 1,200 rials ($0.03) and 1,400 rials ($0.04), respectively. The special commission is valid for seven years.

Following the incentives provided by the government, 50 private investors have expressed willingness to build CNG stations while pledging to provide the land and infrastructure.

Iran is one of the leading countries in promoting CNG use that comprises approximately 22% of the country's fuel basket. So far, $2.4 billion have been invested to expand CNG use.

 Despite these measures, there is still a huge gap between the number of pumps and vehicles. According to reports, Iran has one CNG station for every 27,000 vehicles, which is nine times lower than the global average.

 

Financialtribune.com